Fundraising questioned in Sarasota City Commission race

Published: Wednesday, May 1, 2013 at 6:05 p.m.

Last Modified: Wednesday, May 1, 2013 at 6:05 p.m.

SARASOTA - Jesse Biter has not hidden his desire to shape Sarasota politics and get Richard Dorfman elected to the City Commission on May 14. The multi-millionaire has raised money for Dorfman and set up a fundraising arm to “educate” voters about Susan Chapman, the candidate he opposes.

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But it is what Biter has not done — namely file a required finance report — that has some people crying foul. The same critics say Dorfman has not properly disclosed how employees at Biter's property known as the HuB have supported his campaign.

On Tuesday, Biter, 36, got a reminder from the city auditor and clerk: if he is using the fundraising organization to affect the upcoming election, he needs to follow the rules and report to the city.

Biter has already missed one city deadline for reporting the finances of his recently created electioneering communications organization, Biter ECO, which can receive unlimited amounts of money to use on media ads ahead of an election.

He said his attorney told him he only had to file finance reports with the state, which would mean any contributions and expenditures would not be public until months after the city commission election.

“We're not trying to hide anything, we just want to do it legally,” Biter said. If that means filing with the city, Biter said would do so. “If I have to, or if I should, yeah.”

According to state election law, he has to.

After the Herald-Tribune spoke with Biter about the filing issue and City Auditor and Clerk Pam Nadalini sent the letter, Biter's attorney, Bucky Mitchell, said he was aware of the next city reporting deadline — May 8 — and the organization plans to file finances then.

Mitchell, considered an expert on state election law, said he did not know about the previous reporting deadline on April 26. He said Biter's accountant was in charge of filing.

Dorfman's critics say the candidate has also not followed the rules for reporting campaign finances. They argue Dorfman should list in-kind contributions from employees at the HuB business incubator on his finance reports.

The interest and investment in the local election come as Sarasota is trying to determine how to simultaneously foster business and keep residents satisfied. Biter and others say increased density and a change in noise restrictions could create a more vibrant downtown, while others argue the city must maintain a high quality of life for residents by keeping the current rules and enforcing them.

The involvement of big-money organizations is unprecedented in the local race, said Kelly Kirschner, a former mayor and Chapman supporter.

“No one ever has expected you would see that in a local city election where you're talking about community gardens and how our neighborhood safety has improved,” Kirschner said.

“I think where the money comes from and how you finance campaigns probably gives you a pretty good indication about someone's thinking,” he said. “If it is going to happen, they better be reporting.”

Creating the ECO

Biter jumped into politics over the past couple of years.

He ran presidential candidate Rick Santorum's Florida campaign and has hosted events for politicians, including U.S. Sen. Marco Rubio, at his home.

But the Biter ECO, for now, appears very city-centric. The organization's goals are outlined on its website:

• Allow increased density of living units downtown, on the North Trail and in the Rosemary District.

• Create a noise ordinance that clearly defines what businesses can do and protects residents.

• Add an elected mayor charter amendment to the November 2014 ballot.

ECOs are limited in how they can support a campaign. They can only spend money on media advocacy, such as television and newspaper ads, or phone calls, according to state election law. There is no limit on how much someone can give an ECO.

The organization would allow Biter to have greater sway in the city, where he already is flexing his financial muscles.

The entrepreneur whose company, Dealers United, provides car dealerships with office supplies, is working on a downtown “HuB PuB” sports bar next to the HuB. He has also bought several properties around downtown and announced plans to build about 200 smaller apartments in the heart of the city.

His views on the noise ordinance and increased density — allowing more living units in buildings — dovetail with Dorfman's.

In a recent email to voters that states along the bottom, “Paid electioneering communication paid for by Biter ECO,” Biter chided city commissioners for their decision (which they later reversed) to put a moratorium on new bars in response to noise issues.

“This is the type of nonsense a candidate like Richard Dorfman will fight against. We need real leadership in city hall to ensure Sarasota continues to grow more vibrant while respecting the residents that live in the core,” he wrote.

Biter announced the creation of his ECO at an April 10 fundraiser he hosted for Dorfman, the candidate said. Biter ECO filed a statement of organization with the state the next day.

Dorfman said he is not involved with Biter's new organization.

“I have nothing to do with Jesse's ECO. I'm not actively participating in it or anything else,” Dorfman said.

Dorfman previously considered using money from Citizens United For Future Leaders, an ECO created by former Sarasota County Republican Party Chairman Eric Robinson. Dorfman said he decided against it after discussing the idea with a number of supporters.

“We decided it just really wasn't necessary,” he said.

The candidate, who is competing with Mayor Suzanne Atwell and Chapman for the two open seats, has had the best-funded campaign.

According to finance reports filed with the city last week, Dorfman has received $57,516.10 in contributions, Atwell has $24,238.75 and Chapman $27,755.

Acting like a PAC

But some Dorfman opponents say he is not reporting all the contributions he has received.

Employees at the HuB, a building in downtown Sarasota that houses entrepreneurs, have backed Dorfman's campaign. Biter owns the property that the HuB operates out of and his company, Biter Enterprises, partners with the organization.

Biter said he is just the landlord, and the political involvement coming from the HuB is among individuals who want to spread the word about the importance of the May 14 election.

“There's not any single person or entity that's doing anything. It's just a bunch of volunteers, a bunch of young professionals,” Biter said.

But Chapman and some of her supporters say the HuB's involvement has gone beyond expressing opinions.

“They claim that they're a business incubator but they're acting like a political action committee,” Chapman said.

Kirschner agrees, and pointed out a post on the “Richard Dorfman for Sarasota City Commission” Facebook page that said he has a campaign office at the HuB.

“If it walks like a duck and quacks like a duck, it's probably a duck,” Kirschner said. He said HuB founder Rich Swier Jr. should have a “heightened awareness” of campaign finance requirements because he monitored a group that was pushing for a strong city manager ballot measure in the last election and filed a complaint with the state over their lack of reporting.

There is one $50 payment for “web site development” to the HuB Studios reported under Dorfman's expenditures over the past year. He has not reported any in-kind contributions from the organization.

Swier said he is a big Dorfman supporter and has made calls, gone door-to-door for the candidate and helped him with his website. The HuB hosted a Dorfman campaign event in December and a call bank for him in March. Sarasota Day, a media organization based in the HuB, has a video near the top of their website titled, “Politically Personal: Getting Personal with Richard Dorfman.”

“I can understand how people blend all that together,” Swier said.

Dorfman said while people at the HuB write articles and emails backing his campaign, employees there do not work for him.

“They post their feelings on different political situations,” Dorfman said. “That's their right.”

<p><em>SARASOTA</em> - Jesse Biter has not hidden his desire to shape Sarasota politics and get Richard Dorfman elected to the City Commission on May 14. The multi-millionaire has raised money for Dorfman and set up a fundraising arm to “educate” voters about Susan Chapman, the candidate he opposes. </p><div class="art_item art_item_inset art_item_facts">
<h3>Facts</h3>
<h4>ELECTION GUIDE</h4>
<p><A HREF="http://politics.heraldtribune.com/category/blog/sarasota-city-elections/" target="_blank">Click here for a guide to the Sarasota City Commission election</a></p>
</div>
<p>But it is what Biter has not done — namely file a required finance report — that has some people crying foul. The same critics say Dorfman has not properly disclosed how employees at Biter's property known as the HuB have supported his campaign.</p><p>On Tuesday, Biter, 36, got a reminder from the city auditor and clerk: if he is using the fundraising organization to affect the upcoming election, he needs to follow the rules and report to the city. </p><p>Biter has already missed one city deadline for reporting the finances of his recently created electioneering communications organization, Biter ECO, which can receive unlimited amounts of money to use on media ads ahead of an election.</p><p>He said his attorney told him he only had to file finance reports with the state, which would mean any contributions and expenditures would not be public until months after the city commission election.</p><p>“We're not trying to hide anything, we just want to do it legally,” Biter said. If that means filing with the city, Biter said would do so. “If I have to, or if I should, yeah.” </p><p>According to state election law, he has to.</p><p>After the Herald-Tribune spoke with Biter about the filing issue and City Auditor and Clerk Pam Nadalini sent the letter, Biter's attorney, Bucky Mitchell, said he was aware of the next city reporting deadline — May 8 — and the organization plans to file finances then.</p><p>Mitchell, considered an expert on state election law, said he did not know about the previous reporting deadline on April 26. He said Biter's accountant was in charge of filing.</p><p>Dorfman's critics say the candidate has also not followed the rules for reporting campaign finances. They argue Dorfman should list in-kind contributions from employees at the HuB business incubator on his finance reports.</p><p>The interest and investment in the local election come as Sarasota is trying to determine how to simultaneously foster business and keep residents satisfied. Biter and others say increased density and a change in noise restrictions could create a more vibrant downtown, while others argue the city must maintain a high quality of life for residents by keeping the current rules and enforcing them.</p><p>The involvement of big-money organizations is unprecedented in the local race, said Kelly Kirschner, a former mayor and Chapman supporter.</p><p>“No one ever has expected you would see that in a local city election where you're talking about community gardens and how our neighborhood safety has improved,” Kirschner said.</p><p>“I think where the money comes from and how you finance campaigns probably gives you a pretty good indication about someone's thinking,” he said. “If it is going to happen, they better be reporting.”</p><p><b>Creating the ECO</b></p><p>Biter jumped into politics over the past couple of years. </p><p>He ran presidential candidate Rick Santorum's Florida campaign and has hosted events for politicians, including U.S. Sen. Marco Rubio, at his home.</p><p>But the Biter ECO, for now, appears very city-centric. The organization's goals are outlined on its website:</p><p>• Allow increased density of living units downtown, on the North Trail and in the Rosemary District.</p><p>• Create a noise ordinance that clearly defines what businesses can do and protects residents.</p><p>• Add an elected mayor charter amendment to the November 2014 ballot.</p><p>ECOs are limited in how they can support a campaign. They can only spend money on media advocacy, such as television and newspaper ads, or phone calls, according to state election law. There is no limit on how much someone can give an ECO.</p><p>The organization would allow Biter to have greater sway in the city, where he already is flexing his financial muscles. </p><p>The entrepreneur whose company, Dealers United, provides car dealerships with office supplies, is working on a downtown “HuB PuB” sports bar next to the HuB. He has also bought several properties around downtown and announced plans to build about 200 smaller apartments in the heart of the city.</p><p>His views on the noise ordinance and increased density — allowing more living units in buildings — dovetail with Dorfman's.</p><p>In a recent email to voters that states along the bottom, “Paid electioneering communication paid for by Biter ECO,” Biter chided city commissioners for their decision (which they later reversed) to put a moratorium on new bars in response to noise issues.</p><p>“This is the type of nonsense a candidate like Richard Dorfman will fight against. We need real leadership in city hall to ensure Sarasota continues to grow more vibrant while respecting the residents that live in the core,” he wrote.</p><p>Biter announced the creation of his ECO at an April 10 fundraiser he hosted for Dorfman, the candidate said. Biter ECO filed a statement of organization with the state the next day.</p><p>Dorfman said he is not involved with Biter's new organization.</p><p>“I have nothing to do with Jesse's ECO. I'm not actively participating in it or anything else,” Dorfman said.</p><p>Dorfman previously considered using money from Citizens United For Future Leaders, an ECO created by former Sarasota County Republican Party Chairman Eric Robinson. Dorfman said he decided against it after discussing the idea with a number of supporters.</p><p>“We decided it just really wasn't necessary,” he said.</p><p>The candidate, who is competing with Mayor Suzanne Atwell and Chapman for the two open seats, has had the best-funded campaign. </p><p>According to finance reports filed with the city last week, Dorfman has received $57,516.10 in contributions, Atwell has $24,238.75 and Chapman $27,755.</p><p><b>Acting like a PAC</b></p><p>But some Dorfman opponents say he is not reporting all the contributions he has received. </p><p>Employees at the HuB, a building in downtown Sarasota that houses entrepreneurs, have backed Dorfman's campaign. Biter owns the property that the HuB operates out of and his company, Biter Enterprises, partners with the organization.</p><p>Biter said he is just the landlord, and the political involvement coming from the HuB is among individuals who want to spread the word about the importance of the May 14 election. </p><p>“There's not any single person or entity that's doing anything. It's just a bunch of volunteers, a bunch of young professionals,” Biter said. </p><p>But Chapman and some of her supporters say the HuB's involvement has gone beyond expressing opinions.</p><p>“They claim that they're a business incubator but they're acting like a political action committee,” Chapman said. </p><p>Kirschner agrees, and pointed out a post on the “Richard Dorfman for Sarasota City Commission” Facebook page that said he has a campaign office at the HuB.</p><p>“If it walks like a duck and quacks like a duck, it's probably a duck,” Kirschner said. He said HuB founder Rich Swier Jr. should have a “heightened awareness” of campaign finance requirements because he monitored a group that was pushing for a strong city manager ballot measure in the last election and filed a complaint with the state over their lack of reporting.</p><p>There is one $50 payment for “web site development” to the HuB Studios reported under Dorfman's expenditures over the past year. He has not reported any in-kind contributions from the organization.</p><p>Swier said he is a big Dorfman supporter and has made calls, gone door-to-door for the candidate and helped him with his website. The HuB hosted a Dorfman campaign event in December and a call bank for him in March. Sarasota Day, a media organization based in the HuB, has a video near the top of their website titled, “Politically Personal: Getting Personal with Richard Dorfman.”</p><p>“I can understand how people blend all that together,” Swier said.</p><p>Dorfman said while people at the HuB write articles and emails backing his campaign, employees there do not work for him.</p><p>“They post their feelings on different political situations,” Dorfman said. “That's their right.”</p>